It's true that
owning volatile stocks can result in big gains (as well as big losses, if you're not careful).
Not exact matches
Treasury yields erase their earlier decline on Wednesday after
stocks rebound in a
volatile trading session that came in the backdrop of China's announcement it would levy its
own batch of tariffs against the U.S.
Those returns were incredibly
volatile — a
stock might be down 30 % one year and up 50 % the next — but the power of
owning a well - diversified portfolio of incredible businesses that churn out real profit, firms such as Coca - Cola, Walt Disney, Procter & Gamble, and Johnson & Johnson, has rewarded owners far more lucratively than bonds, real estate, cash equivalents, certificates of deposit and money markets, gold and gold coins, silver, art, or most other asset classes.
It is still possible for exchange traded funds to be
volatile but normally an earnings report or buyout of a single component of the fund will be muted compared to
owning the single
stock.
The manager of a
volatile fund should also avoid taking concentrated positions, because when he is doing well, his
own buying may drive the
stocks he
owns up, only to see them fall harder when he is forced to liquidate positions when the market is doing poorly, and shareholders are leaving.
If serious short - term losses would upset you enough to make you sell any
stock you
own, it might be good for you to avoid more
volatile investments.
I use leveraged ETFs for the S&P because because the
stock market on its
own isn't
volatile enough
Over a matter of several months, you can use call options to minimize the risk of
owning stock in a
volatile market.
There's nothing wrong with
owning a smaller dollar amount of a very
volatile stock.
Question: I have
owned Transocean (RIG), for a while, and while I know it is a very
volatile stock (why, I don't know), when do you expect it to get over the $ 200 mark?
The only thing to think about if you
own stocks you love is if you're going to add to your positions when the market becomes excessively
volatile.
This is my razor: if they can't manage
owning an S&P 500 index fund, what makes us think that they can manage a more
volatile portfolio of common
stocks?
Stock markets are notoriously
volatile, but somehow international exchanges don't feel quite as erratic as our
own.
You
own 3
volatile stocks, and convert them to 3 Roth accounts.
Emerging markets
stocks, for example, can be extremely
volatile on their
own, but adding them to a diversified portfolio can actually lower your risk.
Stock prices can be
volatile but you can minimize the volatility by
owning stocks through diversified mutual funds.